Republic Acts

REPUBLIC ACTS

REPUBLIC
ACT NO. 509

REPUBLIC ACT NO. 509 - AN
ACT DECLARING NATIONAL POLICY, AUTHORIZING THE PRESIDENT OF THE
PHILIPPINES FOR A LIMITED PERIOD TO FIX CEILING PRICES OF COMMODITIES
AND TO PROMULGATE RULES AND REGULATIONS REGARDING PRICES OF COMMODITIES
TO EFFECTUATE SUCH POLICY, AND AUTHORIZING THE APPROPRIATION OF A
CERTAIN SUM OF THE PURPOSE

Section 1. It is
hereby declared to be the national policy during the effectivity of
this Act to prevent, locally or generally, scarcity, monopolization,
hoarding, injurious speculation, manipulation, and profiteering,
affecting the supply, distribution and movement of both imported and
locally manufactured or produced foodstuffs, textile, clothing, fuel,
light and illumination, footwear, drugs, medicines, medical, dental and
optical supplies, paper and paper products, school supplies, building
materials, agricultural and industrial machinery, fuel and lubricants,
and other articles, goods or commodities control of the price of which
may be deemed essential to the public interests.

Sec. 2. There is hereby created a Price
Administration Board which shall be composed of a Chairman, a
Vice-Chairman who shall act as Price Administrator, who shall be the
General Manager of the Philippine Relief and Trade Rehabilitation
Administration, and three members, one to represent the consumers,
another to represent the producers, and another to represent the
distributors, who shall be appointed by the President of the
Philippines with the consent of the Commission on Appointments. The
Price Administrator shall be the Executive Officer of the Board.

Sec. 3. Whenever the price or prices of a
commodity or commodities mentioned in section one hereof have risen or
threaten to rise to an extent or in a manner inconsistent with the
national policy declared in said section, the President of the
Philippines, upon recommendation of the Price Administration Board,
shall establish, by regulation or order, such maximum price or prices
as shall be generally fair, reasonable and equitable, and promulgate
such rules and regulations as may be deemed necessary to effectuate the
purpose of this Act: Provided, however, That the price of palay, rice
and corn shall be fixed by the President upon the recommendation of the
Rice Emergency Board. In determining such maximum price or prices, the
President, through the Price Administration Board, shall insofar as
practicable, advise and consult with representative members of the
industry which will be affected through a committee or committees,
either national or regional, or both, of such industry. In the
determination of such maximum prices, the President and the Price
Administrative Board shall take into account relevant factors such as
speculative fluctuations, general increases or decreases in cost of
production, distribution, transportation, storage, and other relevant
factors affecting prices. Any regulation or order issued under this
section may be established in such form and manner, may contain such
classifications and differentiations and may provide for such
adjustments and reasonable exceptions as are necessary and proper in
order to effectuate the purposes of this Act.

Sec. 4. Whenever any article, goods or commodity
is in short supply, or whenever there is an uncontrolled inflation of
prices, the President, through the Price Administration Board or any
office or officer he may designate, may, if public interests demand,
order the sale thereof by the owner at ceiling prices giving first
priority for its purchase to the Philippine Relief and Trade
Rehabilitation Administration or order the sale by the owner thereof
under the supervision of the Board, office or officer so designated, to
the public of such article, goods or commodity.

Sec. 5. Whenever any article, goods or commodity
is in short supply, or whenever there exists reasonable ground to
believe that it will disappear in the open market, or whenever there is
an uncontrolled inflation of prices, the PRATRA or any agency or
instrumentality of the government including any government-owned or
controlled corporation may, with the approval of the President, import
directly such article, goods or commodity for distribution in the local
market through such channels as it may choose, and such importation
shall not be subject to any quota requirement provided for by any
economic control legislation.

Sec. 6. In order to facilitate the determination
of the maximum selling price of any article, goods or commodity and for
the purpose of enforcing the provisions of this Act, the Price
Administration Board and the local price administration committees
shall, directly or through the commercial agents, the Philippine Relief
and Trade Rehabilitation Administration, Internal Revenue Agents,
Supervisors of the National Cooperative Administration, provincial,
city and municipal treasurers and city and municipal police forces have
the power: (a) to examine bills of lading bills of sale, invoices,
books, records and other pertinent documents owned or in the possession
of any importer, producer, manufacturer, wholesaler or retailer; and
(b) upon the issuance of a search warrant, to inspect premises, bodegas
or storerooms where stocks of articles, goods or commodities whose
prices are controlled are kept. The Board and the local price
administration committees may, by subpoena or subpoena duces tecum,
require any person to appear and testify or to appear and produce
books, records and other documents, or both, and in the case of
contumacy by, or refusal to obey a subpoena or subpoena duces tecum
issued to any such person, the municipal court or the justice of the
peace court of the city or municipality in which such importer,
wholesaler, retailer, manufacturer or producer is found or resides or
transacts business, upon application, and after notice to any such
person and hearing, shall have jurisdiction to issue an order requiring
such person to appear and give testimony or to appear and produce
books, records, and other writings, or both, and any failure to obey
such order of the court shall be punished by such court as contempt
thereof.

Sec. 7. Within thirty days after the approval of
this Act, all importers, manufacturers or producers, wholesalers, and
retailers of the articles, goods or commodities mentioned in section
one hereof and of other merchandise the price of which has been placed
under control shall file with the Price Administration Board or its
duly authorized representative a complete and true inventory of their
stock under oath. Thereafter, all expected shipment of goods, articles
or commodities by importers, shall be declared under oath to the Board
or its duly authorized representative within five days after receipt of
the corresponding bills of lading and other shipping documents.

Importers, manufacturers or producers and wholesalers of articles,
goods or commodities of the categories mentioned in section one hereof
and of other articles, goods or commodities the price of which has been
placed under control shall transmit to the Price Administration Board
or its authorized representative a monthly report of their sales under
oath.

Sec. 8. Any importer, manufacturer or producer,
wholesaler or retailer who has in his possession and/or control any of
the articles, goods or commodities mentioned in section one hereof or
other merchandise the prices of which are under control, in excess of
the quantities reported by him under section seven of this Act shall be
deemed guilty of hoarding for which he shall be prosecuted and punished
under this Act. The excess stock shall be considered proof of the crime
and may be confiscated by the Price Administration Board and
immediately disposed of as property of the state in such manner as will
best serve the public interest, and the proceeds of such sale shall be
deposited with the court of justice having jurisdiction over the
criminal case for violation of this section.

Upon conviction of the owner or possessor of such excess stock, the
said confiscation shall be considered as penalty in addition to that
prescribed in section twelve hereof, but in the event the owner or
possessor accused of hoarding is found innocent, the said excess stock
shall be returned to him or if already sold, the proceeds of the sale
shall be returned to him without any deduction.

In order to avoid the transfer of goods, articles, or commodities the
prices of which have been placed under control, by an importer,
manufacturer, producer, wholesaler or retailer, to persons who are not
licensed merchants for the purpose of evading the provisions of this
Act, the Price Administration Board shall, if in its judgment
circumstances demand, determine and fix the maximum quantity of stock
which any person may keep or possess for his use and that of his
dependents for a given period, thereby requiring him to report under
oath to the Price Administration Board or its duly authorized
representative the quantity of articles, goods or commodities in his
possession or under his control in excess of the allowable stock
granted him by the Board. Any excess stock not reported as required by
this section, shall make the owner or possessor thereof liable to
criminal prosecution for violation of this Act and the said excess
stock shall be considered commandeered or confiscated depending upon
the outcome of the criminal case.

Sec. 9. The Price Administration Board or its duly
authorized representative shall, upon information made under oath that
any person, corporation, partnership or association has in his or its
possession and/or control any of the articles, goods or commodities the
prices of which have been placed under control by the said Board, in
excess of the quantities reported by him as required in this Act, and,
upon the issuance of a search warrant, direct agents of the Philippine
Relief and Trade Rehabilitation Administration, Bureau of Internal
Revenue Agents, commercial agents of the Bureau of Commerce,
supervisors of the National Cooperative Administration, or such other
government agents, as may be authorized in writing by the said Board,
to enter and inspect factories, warehouses, stores or any establishment
where such articles, goods or commodities are kept or stored to verify
such excess. The excess stock shall be seized by the Government and
disposed of in the manner provided in section eight hereof.

Section 10. All persons engaged in the retail sale of
the articles, goods and commodities mentioned in section one hereof and
of merchandise the price of which has been placed under control shall
post in a conspicuous place in their establishment, store or stall a
list of all such articles, goods and commodities displayed and offered
for sale with their corresponding prices, and, in addition, shall
attach to said merchandise a price tag in such manner as to be within
the plain view of the public. All displayed merchandise shall be deemed
offered for sale. No person engaged in the retail trade shall refuse to
sell any such displayed merchandise.

Section 11. Any person not in authority who furnishes
information that results in the discovery, seizure and confiscation of
hoarded merchandise shall be entitled to a reward equivalent to twenty
per centum of the value of the confiscated merchandise. Similarly, any
person not in authority who furnishes information that results in the
prosecution and conviction of any importer, producer or manufacturer,
wholesaler, or retailer for selling any article, goods or commodity at
a price in excess of the maximum price shall be entitled to a reward
equivalent to twenty per centum of the fine, payable from such fine.
Upon his request, the name of the informer shall be kept secret and any
government officer or employee authorized by rules and regulations to
receive the information who reveals the name of the informer shall be
punished under section twelve hereof.

Section 12. Imprisonment for a period of not less
than two months nor more than twelve years or a fine of not less than
two thousand pesos nor more than ten thousand pesos, or both, shall be
imposed upon any person who sells any article, goods, or commodity in
excess of the maximum selling price fixed by the President; or who
hoards or keeps articles, goods or commodities mentioned in section one
hereof or such other merchandise the price of which has been placed
under control in excess of the quantities reported by him to the Price
Administration Board; or who refuses to sell any merchandise displayed
and offered for sale in his establishment, store or stall, or any
merchandise which though not displayed are in stock; or who having in
stock merchandise the price of which is under control shall transfer
the same or make a false or fictitious sale of all or any portion
thereof so as to defeat the purposes of this Act; or who fails or
refuses to file with the said Board an inventory of his stock and/or
transmit copies of bills of lading or bills of sale, or who violates
any provision of this Act or any rules or regulations issued by the
President pursuant to the provisions of this Act: Provided, however,
That in the case of aliens, in addition to the penalty herein provided,
the offender shall be, upon final conviction, subject to immediate
deportation without the necessity of any further proceedings on the
part of the Deportation Board.

In the case of corporations, partnerships or associations, the
President, managing director or manager shall be held criminally
liable.

In addition to the penalties prescribed above, the persons,
corporations, partnerships, or associations found guilty of any
violation of this Act or of any rules or regulations issued by the
President pursuant to this Act shall be barred from the wholesale and
retail business for a period of five years for a first offense, and
shall be permanently barred for the second or succeeding offenses.

Any government officer or employee who, by neglect or connivance, has
enabled an importer, wholesaler, retailer or any person who has
articles, goods or commodities in his control or possession, to hide or
transfer his stock or any portion thereof in order to save them from
being commandeered, forcibly sold, confiscated or subject to such
measure as the government may deem wise and proper for the public
interest, or has in any mannerded or abetted in the violation or
circumvention of the provisions of this Act, shall be held criminally
liable as co-principal under this section and shall, in addition,
suffer the penalty of perpetual absolute disqualification to hold
public office. Any government officer or employee who, being duly
authorized by the Price Administration Board to act as its agent, shall
divulge to any person, or make known in any other manner than may be
authorized by law, any information regarding the income, method of
operation or other confidential information regarding the business of
any person, association or corporation, knowledge of which was acquired
by him in the course of the discharge of his official duties, shall be
punished by both a fine of not less than two thousand pesos nor more
than ten thousand pesos and imprisonment of not less than two years nor
more than ten years.

Section 13. All officers, agents, employees, agencies
and instrumentalities of the Government, when so required by the Price
Administration Board, shall act as its deputies and agents in carrying
out and enforcing the provisions of this Act.

Section 14. If any provision of this Act or the
applicability of such provision to any person or circumstance shall be
held invalid, the validity of the remainder of this Act and the
applicability of such provisions to other persons or circumstances
shall not be affected thereby.

Section 15. All acts or executive order or parts
thereof in conflict with the provisions of this Act are hereby
repealed.

Section 16. The sum of one hundred thousand pesos, or
so much thereof as may be necessary, is authorized to be appropriated
out of any funds in the National Treasury not otherwise appropriated to
carry out the provisions of this Act.

Section 17. This Act shall take effect upon its
approval and shall continue in force until April 30, 1951, unless
sooner terminated by concurrent resolution of Congress: Provided,
however, That convictions rendered under this Act or under the duly
promulgated orders, rules and regulations issued pursuant thereto shall
remain valid and enforceable, and prosecutions of offenses committed
during the effectivity thereof shall continue and shall not be barred
until terminated by conviction or acquittal of the accused.